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Question: A fact of a market economy is that the market rewards the owners of resources (like labor, that's us) according to the degree they are willing to work, sacrifice, take risks, get an education, etc. As you can see from the above chart the highers earning quintile (20%) get 50% of the income. They also pay 90% of the income taxes. The lowest earning 20% get 3.4% of the income. We do have some methods to make incomes more equal. Our progressive tax system taxes higher earniers at a higher rate, and we give income transfers to the poor.
Of course income distribution is unequal in the U.S., do you feel it is as it should be or is it too unequal? Why do you feel that way? If you feel it is too unequal, what would you propose to make it more equal? Do you feel the free market economy that rewards people according to their abilities and their willingness to work is fair? What are the issues associated with trying to make incomes more equal?
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You are a senior manager in a medium-sized but highly profitable equipment manufacturing organization. You and other senior leaders have decided to partner with an international company on several projects of mutual interest.
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